Rising fuel prices pushed inflation up in February, with the consumer price index (CPI) gaining 0.7%, its largest monthly gain in nearly four years. Sustained higher prices at the pump will act as a drag on GDP by obstructing consumption, yet inflation remains at comfortable levels for the Fed, which is expected to continue with its ultra-accommodative monetary stance.

The 0.7% increase in headline inflation was mainly caused by a jump in the energy index, which gained 5.4% and accounted for about three-fourths of the total increase, the Bureau of Labor Statistics explained on Friday. Over the past twelve months, CPI is up 2%, up from 1.6% in December.

Breaking down the energy index, it was gasoline, which rose 9.1% according to the index, which caused the most damage. Electricity, natural gas, and fuel oil also gained. According to the AAA daily fuel Gauge Report, the national average price for a gallon of regular stood at $3.695, and has been rising since January 1.

Higher gas prices are the result of both regulation and lack of infrastructure related to transporting and refining crude oil. Majors producers like Conoco Phillips and Hess are moving along with plans to divest their downstream assets, which include refineries, in order to focus on higher-margin exploration and production. Others, like big dogs Exxon Mobil and Chevron, are betting on the integrated model, which in recent quarters have helped their bottom lines.

Back to inflation, the less volatile core reading, which excludes food and energy, gained 0.2% in February, in line with expectations. Over the past 12 months, core CPI has also risen 2%. In February, the shelter index gained 0.2% while rent rose 0.3%.

Inflation is one of the measures most closely followed by the Federal Reserve, which has repeatedly noted expectations remain well anchored. Fed Chairman Ben Bernanke, who has been accused by many of setting the stage for an inflationary spiral through his asset purchase programs or QE (quantitative easing), recently said he has the best inflation record of any Fed chief in the post-war era. The Fed aims at keeping inflation at-or-slightly-below 2%. Friday’s suggests the Fed won’t face any obstacles in continuing its monetary stimulus at next week’s FOMC meeting.